In a bid to cut its costs, chipmaker Advanced Micro Devices (AMD), said it will lay off 500 people from its work force of 15, 500, with immediate effect.

The move forms a part of the changes the company is currently undertaking to reduce expenses, including spinning off its manufacturing arm.

Further, the company is set to move 3,000 more jobs in early next year to The Foundry Co, the $5.7 billion spin-off of its manufacturing plants in a joint venture with Abu Dhabi.

This spin-off unit is expected to give AMD a cash injection and shrink its debt.

The company didn’t disclose the regions from where the lay off will take place.